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Over the past few years, Alibaba Group has made air and water quality its top priorities in environmental protection. Apart from making day-to-day recycling and resource conservation efforts to control waste within the company, Alibaba also provides financial support to various non-governmental organizations and charity funds.14
Alibaba has also been contributing to the rebuilding efforts in China’s Sichuan Province since the earthquake occurred in 2008. The program includes organizing e-commerce seminars and training sessions to help local merchants start their own online ventures andachieve self-sustainability. Alibaba also encourages and creates opportunities for employees to actively participate in community service and philanthropic programs.Recommendation:After analyzing Alibaba’s business model and strategies, we think their future direction should keep focusing on the current Chinese market while looking abroad for further growth opportunities. In China, Alibaba must continue to focus on strong marketing and excellent customer service to keep their strong market share. They should continue to diversify into high growth industries such as mobile and digital media, which help compliment the current products AliBaba holds. In terms of expansion, a major area we’ve identified is a B2C platform in the U.S.By focusing on individual consumers, AliBaba can begin to expand both its user base andconsumer presence in domestic markets. While entering the space will effectively put AliBaba against competitors such as eBay and Amazon, AliBaba’s cost leadership product base ultimately gives them an edge. Opening up a B2C platform will allow average American consumers to order directly from Chinese sellers. While AliBaba is a Chinese based company, their brand recognition in The United States is high already aftertheir successful IPO. Being the dominant e-commerce platform in China, AliBaba has a valuable network of sellers for international consumers. A more established brand in the United States will only further their user base and presence in the global e-commerce space. 15
Collectively with their strong management and aggressive expansion plan, Alibaba’s future looks bright. They are well capitalized and have immense human capital with capabilities of rapid expansion. If Alibaba can continue to serve China’s market while strengthening their presence in the US, they will see consistent growth in the years to come. 16
Works Cited"China Internet Users." - Internet Live Stats. N.p., n.d. Web. 03 May 2015.LAJOIE, MARC, and NICK SHEARMAN. "What Is Alibaba?" - WSJ.com. PORTER ERISMAN, 3 Feb. 2015. Web. 05 May 2015.Matteson, Scott. "10 Things You Should Know about Alibaba." TechRepublic. N.p., 23 Sept. 2014. Web. 03 May 2015."Our Businesses." Alibaba Group. N.p., n.d. Web. 05 May 2015."The Most Successful E-commerce Platform in 2014." CIDDNET.COM. N.p., 5 Dec. 2014. Web. 03 May 2015.17